FLEX LTD. Annual Report, Year Ended Mar 31, 2011

Flextronics International Ltd. (FLEX) reported significant revenue growth in fiscal year 2011, reaching $28.7 billion, a 19% increase from the previous year. This growth was driven by an improved macroeconomic environment and increased demand for customers' end products across all major markets, supported by new customer and program wins. The company also saw an improvement in gross margin to 5.5% from 5.0%, attributed to increased sales volume, better capacity utilization, and cost efficiencies from prior restructuring activities. Net income rebounded significantly to $596.2 million, a substantial increase from $18.6 million in fiscal year 2010, leading to diluted earnings per share of $0.75. Despite the positive financial performance, FLEX faces ongoing competition and industry-specific risks, including short product life cycles and potential component shortages, though the latter showed signs of abating. The company's strategy focuses on talent, customer-centricity, market focus in high-growth sectors, and leveraging its global operations capabilities and vertically-integrated service offerings. Key customer relationships, particularly with Research In Motion, remain crucial, though the company is diversified across multiple markets and geographies. FLEX actively managed its debt, redeeming several subordinated notes, and continued its share repurchase program.